NEW DELHI: The Union Cabinet today approved the recommendations of the 7th Pay Commission for higher allowances, including House Rent Allowance (HRA) which will benefit about 47 lakh Central Government employees and defence personnel.
The decision will be effective from July 1, 2017. Briefing newspersons about the cabinet decision, Finance Minister Arun Jaitley said the HRA that has been approved will be 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city.
He said the HRA will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 depending on the type of city and calculated at 30 per cent, 20 per cent and 10 per cent of minimum pay Rs 18,000. The HRA revision will benefit more than 7.5 lakh employees. HRA constitutes 60 per cent of the total allowance of a Government employee’s pay. The financial implication of revised allowances would be around Rs 30,748 crore per annum, the statement said. (AGENCIES)
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